The Federal Reserve announced a rise in interest rates of 75 basis points for the fourth meeting in a row. Bitcoin first witnessed a big decline after the Fed's rate announcement, but it now appears to be slowly recovering. Although the price of Bitcoin (BTC) has slightly dropped over the previous hour, things could soon change. According to price tracking website CoinGabbar, the price of one bitcoin is $20,110 as of this writing, up 1.85% from the day before.
Following the Fed rate announcement, there is a dramatic decrease in the price of bitcoin.
For the fourth consecutive meeting, the Federal Reserve announced an increase in interest rates of 75 basis points. Following the Fed rate decision, Bitcoin first experienced a significant decrease, but it now seems to be steadily making a comeback. Bitcoin's (BTC) price has slightly decreased during the past hour, but things may soon change. As of this writing, the price of one bitcoin is $20,110, up 1.85% over the previous day, according to price monitoring site CoinGabbar.
Future Progress Might Be Slower
However, the central bank suggested that moving forward, the pace might be slower. The Fed's policy statement stated, the committee will consider the cumulative tightening of monetary policy, the lags with which monetary policy influences economic activity and inflation, and economic and financial developments in evaluating the pace of future rises in the target range.
Jerome Powell, the chair of the Fed, predicted that the rate-hike process will soon slow down during his remarks at the FOMC news conference on Wednesday. Powell stated that the next meeting might be the time to scale back rate increases. This could be a positive development for the market, which was expecting a 75 basis point increase this time around and seeing a slowdown in the pace of interest rate increases through December 2022.
High Inflation Persists
The Fed committee noted that despite the country's moderate growth in spending and output, inflation remained high. The pandemic's effects on supply and demand, rising food and energy costs, and other pricing pressures are all still being felt in the form of soaring inflation. The committee did note that the unemployment rate has remained low lately. The committee observed that there have been significant job increases in recent months and that the unemployment rate has remained low.
The committee also discussed how the Russia-Ukraine conflict has affected the world economy. It explained that the war and other events are putting additional rising pressure on inflation and are affecting global economic activity.
